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BoG chief sees the economy accelerating

Bank of Greece Governor Yannis Stournaras appeared optimistic on Thursday about the growth prospects of the Greek economy, a view echoed also by US financial group Wood and National Bank.

Speaking at the Belgian Business Club, Stournaras said Greece’s growth rates could accelerate to 3 percent, from 1.5 percent in the first half of 2019, and added that after the summer’s fiscal developments the budget may well manage to make the target for a primary surplus of 3.5 percent of gross domestic product.

Wood said in a report that the 1.9 percent rate of growth in the second quarter marks a significant improvement, which confirms the company’s belief that Greece has not been majorly affected by the German slowdown. It estimates that growth has already increased further in the first couple of months of the third quarter, so that 2019 as a whole will record 1.8 percent growth. For 2020, Wood expects a slight acceleration to 1.9 percent.

National says the data on economic sentiment, the main economic sectors’ activity and consumer confidence in July and August, combined with the impact of the new government’s measures, point to a GDP rise over 2.5 percent in the second half and at 2.1 percent for the entire 2019.